low, but a guest said, look, washington is going to mess up the economy. the sequestering issue is prevalent, and the debt ceiling debate is going to further erode consumer confidence, people will not spend, and the rally might be in jeopardy. i'm a real basking of hopefulness and positivity. >> thank you so much. the unions, lou dobbs weighs in on dwindling union membership, but to the point, there's a rally holding on, but a rally nonetheless. >> that's right. the s&p right now, which was above 1500, 1502 to be exact a short time ago, back to the levels we saw in 2007. we're trying to hang on to the rally, but thinking the dow was up more than a hundred points, and now it's up 3 dlsh 4 -- 41. >> will the markets hold on

despite with what's going on with apple breaking down? clinging to green, approached the 1500 level not seen in years. if we end higher, that's the 7th consecutive day of gains, the longest winning streak in more than six years for the s&p. >> and no longer the apple of wall street's eye. it pummeledded as they posted the fourth most profitable company ever. >> the state of the unions, organized work falling to new low levels. >> in all is fair in love and hair? where men and women can be paying the same price for the trip to the salon. >> let's get updated on the the markets. it's been 15 minutes since we checked in with nicole. s&p topping the mark, and all eyes zeroing in, nicole. >> it is exciting, lori and melissa, along the market of

401(k)s, irs, and everybody watched the financial crisis when the dow was at 6500 after having been at 14,000, to see it come all the way back up and not far from 14,000 is a good feeling for folks who really lost a lot during that time. the dow today, right now, at 13820, off the earlier highs hitting five year highs again. the s&p 500 broke through 1500, back to the early five years ago in 2007, december of 2007, those highs. we are watching as far as sector to sector, you mentioned apple at the top of the show and technology. of the ten sectors we follow, the only sector in the red because of apple because consumer discretionary is the top performer. back to you. >> how about that. nicole, thank you so much. talk more about apple as you saw. shares are getting crushed. shares of netflix, well, they are soaring. this as microsoft gears up to

report earnings, and we have the latest on all things test. >> a tale of two very different earnings reports. it's only thursday, but feels like freaky friday. look at the stock price of netflix and apple, apping shares down 11% and netflix rocks higher by 37%. talk about that because we have to shed a light on it this afternoon. the company up big time. it lost the faith of wall street and devotees with a price jump back in 2011, and it's getting footing back today. the company posting a surprise fourth quarter profit adding two million subscribers, many digital, and that is sending the stock higher today. on the flip side, the former golden child proving that some good things must come to an end. this is the biggest one day drop in apple shares seen since 2008. this is despite record iphone and ipad sales, but the company really showing signs

that it is losing its edge with customers who are showing that they want more price conscious options. apparently, apple shares couldn't keep up with the momentum. obviously, that's the talk of tech and wall street today. >> amazing; right? you think of apple, dare i say an old technology company at this point, speaking of which, microsoft. set us up. >> a big name for technology earnings as a whole, and 75 crepts per share on revenues of 21.5 billion dollars, and a couple things to keep in mind with this company reporting after the close today, this is the first earnings release of windows 8 with the full quarter windows 8 folded in. hear about how many copies of that sold, and, also, how many tablet devices sold. this company gives us a bigger picture of the pc industry, the

computers industry looks like. watching for microsoft after the close, but everyone that competes against apple doing well. microsoft, research in motion, yahoo, google, you name it. it's a good day other than for apple. >> backlash going on today. thank you so much. as promised, keep it here on fox business for complete earnings coverage of microsoft and starbucks too. not a technology company, but, boy, so much are dependent on our joe. >> addicted. >> exactly. that's at 4 p.m. eastern. >> oil turning higher at supply data was greater, and heading to the pits of cme, phil flynn, and price futures group, phil, what is oil trading on if not the supply data, phil? >> it's a seaway pipeline. yesterday, oil broke about a dollar when word came out that the pipeline reverses direction to get the glut of oil out of oklahoma down to the gulf coast

had a glitch. they -- the runs from that pipeline were cut in half, and the market was very concerned there this would go on for some period of time meaning that the glut builds a cushion, prices lower, oil would not get where it needed to be. today, there's a report that the glitch will be fixed rather quickly within a week, and we're back up to the normal flows of 400,000 a barrel, and so i guess the call is a rally because oil should be relieved this is going to happen, going to get crude prices more in line with the global market place. gasoline soaring today. a surprise draw down in the gasoline supplies. 1.783 million barrels and concerns about declining imports from europe. there are very tight supplies in new york harbor, and because of the problems in the weather that we've had in europe, some of the gasoline supplies are not going to get to new york meaning higher prices for everybody. sorry about that, guys. >> yeah, don't love that news.

all right, phil, thanks so so mh anyway, appreciate the time. debt ceiling fight delayed for now, but if it goes to plan, the agreement does nothing to stop automatic across the board cuts taking effect march 1st. what do we do now? mike lee joining me from capitol hill. senator lee, thanks for coming on. you know, i think a lot of americans are surprised to hear right now that we still have sequestering in place with all the rangeling going on in the last couple days. what's the plan? >> you know, at this point, there's no plan on the table because the attention has all been focused on the debt limit issue, and two are related, of course, because, ultimately, it's not the debt limit itself the problem. it is the spending that goes on propelling us forward with having the raise the debt limit every six to 18 months because we can't get spending under control. passing this in 2011, raised the debt limit then, put in place automatic cuts to kick in if the

super committee dbt have a proposal. they are about to kick in. >> what do you think is going to happen? what's the talk? >> you know, there's a lot of talk in congress about the need to move towards targeted cuts of the same amount as what were called for in the sequesters. that takes a disproportionally large bite out of the defense infrastructure, and people are concerned about that saying we ought to spread it out evenly across all non-mandatory spending, spending outside entitlements. >> what you put forward which i think is great, an amendment to the constitution, requiring congress to not spend more than it makes, than it takes in in taxes. if you call taxation making money, but it can't spend more than it takes in. any traction on that? >> yeah. this is an idea, an old idea, whose time has timely come, and, you know, as polls show about 75% of all americans support this idea, most of the state

legislatures operate the same way, and we need to do this because we need permanent structural spending reform so that we don't find ourselves back in the same position every six to 18 months in raising the debt limit. >> limit spending to 18% of the gross national product, 18%. right now, it's a rate of 23%. we're looking at some of the other things that you would do. you want a historical average of total federal receipts so congress is only run a deficit, increase taxes, or increase debt if agreed upon by a two-thirds vote. i like how it sounds, but it doesn't sound like you can get other politicians to agree to it? >> rome was not build in a day. it's in the a sell yet, but we have support in the senate for the idea of a balanced budget amendment. the last congress, for example, votes on the amendment, two proposals, the hatch-lee

amendment, got all 47 republicans then in the senate voting for it. we had the udall democratic alternative that got 20 democrats, added together, 67 votes, the two-thirds mar gyp needed in the senate to balance the amendment. there are the votes, but we need a single proposal. we hope to look forwards it. >> good luck, love to see it. senator lee, thank you for coming on. >> thank you. >> all right. searching for answers. the very latest on the investigation of boeing 787 and the impacts of the lithium ion battery and grounding of the dreamliner. >> percentage of organized labor dropping by a large amount last year. lou dobbs weighs in. ♪ ♪

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>> it is time to make money with charles pape, and in this hour, following up on a american success story that made profits. >> on this show, december 10th, swift transportation, the kid playing with the truck, hey, you like the truck? i love it so much, i'm going to own a hundred of them. the company has 14,000, the stock up 14% now, and by the way, holding, and i tell people to hold it. >> really? hang on to it? >> yeah, jpd -- jb hunt, record quarters for the year, and the broader market, a valid rally? old school guys and some others use the dow's theory, and that essentially says one of the cop fir mages, the transportation index, i mean, you talk about something gone par bollic, straight through the roof. a lot is justified #.

this week, kansas city beat by 12%, csx beat by 3%. the numbers have been there, although you get to a point saying, well, give me app example. the airlines, okay, since november 30th close, delta up 40%. ual up 29%, southwest up 20%. the transportations led the rally which gives us some credibility, especially if you're old-school fundamentalist. the dow theory is 110 years old. we were an industrial nation more than now. >> the transports harbor overall economic growth in terms of demand, and, look, so far we have great, but the initial jobless claims at a five year low, and housing market improving. there are bright spots. >> i don't know, another executive said yesterday that it was improving, but slower than ever beforings you know, i mean, it's better, but i mean, st. louis saying we're having

the worst recovery ever had. >> the worst recovery in the history [audience boos] -- history -- >> we are sustaining the debt to gdp ratio at this level for some time now. comparing the u.s. to the lost decade of japan. basically, we'reway -- we're halfway there. >> held by individuals of foreign countries or central bank printing fake money every single day. i understand what you said. they lost two decades. do we want lost two decades? absolutely not. meantime, evaluations the difference the southwest at $10 has good risk reward. stock has been higher in the past, but that's the difference with the stock market sometimes. great points. the domestic economy is not great, but the dow theory gives confident that maybe the rally is real. >> or at least -- >> thank you so much. >> got it. see you. >> nicole on the floor watching

defense contractors for us. nicole? >> i am, indeed. aerospace and defensing think of some of these names including lockheed martin, general dynamics, and this group in particular on a day seeing rallying across the board, not a great day for these names in particular reporting their numbers, and a lot of people did hit a 52-week high today before moving into negative territory. they have been cutting hundreds of jobs, several hundreds of jobs, and let's look at another one. you can see ray down, i just want to say the cfo is very confident about their ability to generate strong earnings. back to you. >> thanks so much. >> not quite as big labor. lou dobbs just ahead on dwindling union membership, and why it was particularly bad last year. >> plus, liz claman in davos with the ceo of nee son with -- nissan with the company's push to go electric.

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>> 20 minutes past the hour, this is your fox news minute. the chicago warehouse covered in ice from 2002 days of firefighters efforts and sub zero temperatures on fire again. one-third of the windy city's fire department fought the flames in the abandoned warehouse since tuesday night. flames rekipped led this morning. evidence france is making progress in the battle with radical islamists in mali. one faction of the rebel group has split off from the al-qaeda linked allies to form a new group look r for a, quote, negotiated solution to the conflict, following 12 days of french air strikes. up employment in spain hit a new record high, 26% up from 25% in the third quarter. almost six million spaniards are out of work. enduring the second recession in just over three years in spain.

those are the headlines from the fox business network. back to melissa and lori. >> thanks so much. laborup -- labor unions suffering a sharp drop in membership. the membership rate fell from 11.8% to 11.3% of all workers. that is its lowest levels since the 1930s. it means they lost about 400,000 members from the ranks. union membership declined over three decades, but the story could be austerity. losses in the public sector hitting them hard with more than half the losses coming from government workers like teachers, firefighters, public administrators. time now for lou dobbs. >> one hates to lose the public administrators and one wonders how the nation will be administered without them. it is an interesting story. it is counter to conventional views and expectations of most people. we have been watching the battles at the national labor

relations board. we know that the president has stacked it with his allies and em baa stairs to the marketplace, and there is this expectation that the powerful organization fl-cio, the service employees union, the teachers unions are just growing and growing, which they had been until last year. we started to see the impact of those local cuts in budgets. this government, this administration, pumped, as you recall in the stimulus package, hundreds of billions of dollars into the hiring of what had been traditionally union jobs, teachers, police, you name it. that's over. what we are seeing now is the market place begins to work. now, as we look at how dramatic these reductions are, basically 6.5% membership in the private sector tells you that the union is a dying institution. it can't find a purpose or a

reason beyond its political alliance with the democratic party. there is no other reason. >> you don't think there's a place in this labor force for a union? what do you think -- >> what do they do? what do they do? >> who advocates for workers. >> who is advocating for workers. >> the afl is really left. >> exactly. look at what's happening. the afl-cio, sat on the fence for years ons issue of illegal immigration embraced it 6789 what's the result of that? more illegal immigration, lower wages for unskilled labor, and for lower education levels, and they brought in their -- and seeking more members, they brought in competition for their members. they got away with it and continued to do so. >> so how do you think they respond now to try and stay alive because, you know, now it's a last gaffe type situation. >> well, trmuka is already out on all sorts of nonsense. until the afl-cio has a

relationship to the well being of its membership that is direct, that is measurable, quantity, they are going to continue to slide. the only place where there's going to be a slower erosion of union memberships, not power, but union membership, will be in public employees. the local governments, of course, the highest employers of union workers because, primarily the teachers unions, but we're seeing the federal government have to roll back. i mean, it's happening right now. we're going to see a great collision around the postal service which has hundreds of thousands of postal union members, and they are facing a devastating roll back already losing about 200,000 members over the course of the last decade. they are looking at the prospect of losing at least another quarter to a third of their membership. this is a trend that is underway right to work states are prevailing in the economic growth, in job creation, and it

is a, i think, without question, a death nail for organized labor in the country. >> lou dobbs, thank you so much. see lou every day here at this time and, of course, at seven and 10 p.m. eastern. tonight, a great show coming up, a debate with gun owners of america, eric prat, and criminal justice expert on the effort to reinstitute an assault weapons ban, and you also have nebraska governor on the keystone pipeline who i was trying to book at five so -- >> uh-huh. >> he went with lou. >> i'm sure for you, he'll clear his schedule, and i, of course -- >> i need to follow-up on that. yeah? i'll just watch your show, i guess, take notes, and get him next time. >> or be enterprising and come up with your own idea. >> i was not stealing your idea. you stole my guest. >> forgive me. >> i'll come on your show and steal him from you. >> i will be more enterprising. >> there you go, thank you, lou.

>> push to sell electric cars to the massing. >> back with liz talking to carlos, the nissan ceo, coming up next. ♪

. ...

melissa: time for knocks now as we do every 15 minutes. we go to the floor of the new york stock exchange. nicole petallides is standing by. >> it is exciting day on wall street. you have big earnings news, some good, some bad. the stock market hitting five-year highs. the dow is still gaining 48 points. let's look at names that hit 52-week highs that we continue to follow. of course disney. it is not the first time it hit a 52-week high. another one, another one. in many cases we're back to 2007 levels. 3m dipped in the red now. home depot, valero. these are not all dow components the first three are dow components. of the 30, 10 are actually red. it is not a broad-based rally as it was before earlier. back to you. melissa: nicole, thanks so much. lori: one thing hurricane sandy taught us most gas stations can run out of gas in a disaster. you would think that would

force an immediate shift to electric vehicles. the liz claman continues her coverage at davos, switzerland, at the world economic forum to rev up the discussion when if ever people will flock to all electric vehicles. liz: if you had to pick the biggest believer in the electric car revolution it would have to be guy sitting next to me, carlos ghosn, chairman and ceo of nissan-renault. can i call it a revolution? >> it is a revolution. it is happening. a revolution you don't always control the time but we're getting there. >> when you say getting there, you cut the price of the nissan leaf by 6,000 u.s. dollars. does that mean we're not that much there that you don't have to add a little incentive? >> this is something we foreseen from the beginning. we relocated production to the united states. we used to shift the cars and batteries from japan. unfortunately with the yen, production coming out of japan is the expensive.

now that it is located in the united states we can afford to cut the price. and new technology is getting more and more affordable. you will see more price cutting. liz: i can not believe where hurricane sandy, practically the entire northern eastern seaboard, didn't have gasoline, didn't automatically say, i was watching the needle of my car go down and panicked, at some point i need an electric car. this is ridiculous. that it didn't force all of us to fast track the purchase of these cars. what will it take, carlos? >> more infrastructure. you need not to worry where you're going to be able to charge the car. liz: okay. >> people charging the car at home or at the office. there is lack of infrastructure. lack of places to go fast charge your car or charge your car. cities are getting there. there are plenty of investments being done in the united states but even japan or in france. this will happen. liz: 15 new hybrid models by 2016. you're not getting enough

sales of the leaf yet. is that a little more you're biting off than you can perhaps you actually can chew? >> no, i don't think so. you have to start with the analysis and strategic analysis where this market is going. in our opinion the market is going to require much more zero emission cars, much more fuel-efficient cars. by the way the united states passed legislation last summer, doubling fuel efficiency in the united states up to 2025. china has decided to have more than 2 million cars, 2 million electric cars and plug inn hybrids before 2020, with more than 500,000 capacity of production every year. liz: another japanese car company, toyota, just jumped over general motors to take the top spot for sales. where do you stand? how do you, how do you scratch your way up to the top and beat those guys? >> we are on the basis of 2012 the renault-nissan alliance produced more than 8 million cars. we're in the top group of large companies above eight

million. you know, the fifth group is way behind us. and i think it is going to be a race between these different groups, general motors, volkswagen, toyota obviously and renault-nissan. the race will be particularly in emerging markets. this is the where the growth is taking place. obviously competition is tough in the united states and japan but particularly who will get the best strategy to china, russia, india, brazil, the middle east and other countries which are growing. liz: are you tired of journalist like jeff flock and me like everybody else, the leaf isn't selling? do you sit in bed at night, think one day they will see that i'm right? we're waiting. we're waiting. >> yes. one day, yes, you will see i'm right. but you know what? if when you start something very innovative you have to be very patient, you know? you have to be very patient. when toyota started a hybrid took them more than 10 years to start to make it a big

factor. when you compare the sales of electric cars to the sales of the bid from the beginning, electric cars are doing well. lori: you want to stay with us at fox business because coming up at 2:00 p.m. eastern liz speaks with nasdaq's bob greifeld and impassioned ceo. melissa: boy, she had everyone day. she had jamie dimon on earlier. she is killing it from davos. is the 787 lithium-ion battery hazardous to boeing's health? the latest on the dreamliner investigation, that's ahead. lori: it will take more than two. the price going up at trader joe's. say independent ain't so. the devastating details are ahead. to ♪ ♪ [ male announcer ] this is karen anjeremiah.

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♪ into a scooter that talks to the cloud? ♪ or turn 30-million artifacts... ♪ into a high-tech masterpiece? ♪ whatever your business challenge, dell has the technology and services to help you solve it. >> i'm adam shapiro with your fox business brief. the white house will nominate former federal prosecutor mary jo white to lead the securities & exchange commission. white was the first woman to serve as the u.s. attorney in manhattan. if confirmed by the senate she will become the first prosecutor to head the sec the president will announce the nomination during a ceremony 2:30 p.m. eastern time. jobless claims fell last

week hitting a five-year low. the labor department said 330,000 people filed for first time benefits compared to the 355,000 forecast. your social security check may not be in the mail come march. the treasury department has been phasing out the physical check over the past couple of years in lieu of direct deposit or direct express debit card. there are exceptions for people who live in remote areas. that's the latest from the fox business network, giving you the power to prosper.

lori: hedge fund titan steve cohen is in davos, believe it or not at the world economic forum. you are surprised to hear that. melissa: i thought he had some issues. didn't think he would go over there. lori: they are at the headquarters in connecticut scrambling to stem the redemptions from the embattle hedge fund and

answers questions from nervous investors about an sec investigation. what are they say? charlie gasparino has exclusive details. >> kind of interesting he is there. lori: what is he trying to do, gin up sympathy? >> he has gone in the past. there is incredible regulatory and prosecutorial interest in steve cohen and. there is wells notice. that means the sec's enforcement decision has recommended to the full commission they bring charges against the company. he personally is not mentioned in that wells notice but, you know, that is pretty dangerous stuff because the sec could theoretically shut shim down as a registered hedge fund which means he can manage his own money but can't take investor money. here's where we are. investors are calling up sac capital. they're weighing whether to pull money out during the first redemption date, february 15th, whether they think this company will be charged and whether they think there will be an issue

there in terms of major fines. here's what we know. investors believe on conversations with sac capital there will be a large fine. zack officials are giving nervous investors answers on the probe. they answered the sec's wells notice. answered. they are awaiting the sec's response and awaiting whether or not if they will be charged. that's what they're telling investors. on top of that they're also saying. this is pretty key, they are saying they would cover any and all costs for the investigation including a fine. that's where it gets sort of interesting. a lot of these investors are telling me, based on their conversations with firms in, at the stamford, connecticut, campus of sac capital they think there will be a large fine. the numbers i hear are all over the place. anywhere from $250 million, these are the numbers being bandied about from investors to something like 500 million along the lines what goldman sachs had to pay to

settle the sec commission charges on abacus about two years ago. that's where we are right now. it is kind of interesting that cohen is in davos. we have confirmed that. he's you know --. melissa: it is a good party. >> it is a fun place to be. i guess it is cold but it's cold here. he his underlings are handling this. this is pretty much a preoccupation going on at sac. it is a firm known to trade a lot, obviously but now they have this extra worry which is regulatory stuff. i can tell you a lot of investors are nervous. they want to know how much of a fine. whether the fund will be shut down. whether steve cohen will get charged. another thing a lot of investors say the indication they're getting from the sac people they believe cohen will not be charged civilly. now as you know there's a criminal investigation involving matthew martoma and using potentially insider information trading on drug stocks where cohen was not mentioned directly

but alluded to in the complaint, the indictment. that is ongoing. that that's separate what i'm talking about here. this is an sec civil case. lori: thank you. a lot of information, charlie, thank you. all good things come to an end. get ready to pay more for wine. melissa: i can't believe this. lori: after 11 years the cost of the famous two buck chuck is going up. melissa: come on. lori: the wine sold at trader joe's stores will set you back $2.49 a bottle. melissa: are you kidding? lori: 50 cent increase. apparently not. harsh winners and unseasonably warm summers led to bad grape crops for 2011 and 20 e that is why the wine is going up. trader joe's sold 2 million bottles of the two buck chuck. melissa: charlie, what do you think of two buck chuck? >> never tried it. lori: are you a wine snob? would you try it?

>> you know, i grew up on carlo rossi. melissa: there you go. >> but --. melissa: in a jug. >> my mom, my mom used to --. melissa: buy it for you? used to give it in the bottle in the morning? >> that's what we used to drink. my parents used to drink it. i never drank it. i graduated to boon's farm very early on. my pallet is a lot more sophisticated. melissa: it is marketing disaster. they are two buck chuck. >> sure for this. lori: do you have more what you want to say? >> i'm ready to go. lori: you're excused. melissa: it is quarter to. as we do every 15 minutes nicole petallides pet is on the floor of new york stock exchange with drugmakers. >> hit it right on time. every 15 minutes, 1:45. we're on. drug makers, pfizer at a new 52-week high. up 1.4%. biogen idec, bristol-meyers,

eli little i. bristol-myers beat the street with fourth quarter earnings. biogen idec receiving positive clinical trial results for their drugs. bristol-myers reaching an agreement, $80 million in order to settle claims for injured child drug problems. the bank index. you're seeing lots of winners there. the vix, the fear index actually above that 1 mark again. but still sitting above 1,808. this is fifth grade charter school from brooklyn. future investors of america. [shouting] melissa: future broadcasters, maybe. very cute. nicole, thanks so much. lori: what is fun thing to do on this otherwise frigid day in new york city. all fair's in love and hair? next we tell you where men and women can pay the same price for a trip to the salon. melissa: j.c. penney's's pricing strategy take two.

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lori: in about 30 minutes the national transportation safety board will give us an update on its investigation to a boeing dreamliner fire at boston's logan's airport. all 787s remain grounded. let's go to rich edson. he is in washington what we may be expecting here

momentarily, rich. >> a national transportation safety board presentation feeting turing lab and test results of the battery that caught fire earlier this month in boston the government grounded all 787 dreamliners after another boston incident and another forced an emergency landing of a tokyo-bound flight. boeing's problem of the 787 dreamliner reach back to issues with suppliers and delays that pushed deliveries back for years of the as for the battery issues, transportation secretary ray lahood says we're working diligently with boeing to figure out a problem and find a solution. our goal is to get this done as quickly as possible but we must be confident the problems are corrected before we move forward. some in the airline industry say these setbacks are common when rolling out new planes. united ceo said on the airline's earnings call says he has confidence in the dreamliner and boeing's ability to fix it. he says united plans to take delivery of more dreamliners. there is still no timeline

when the government may allow airlines to reassume flying the dreamliner or the specific issues regarding the batteries. officials are looking for that as this briefing gets underway in the next half hour. lori: we'll be listening. rich. thank you. melissa: a new controversy from jcpenney to about its pricing plan but is jcpenney whipping fastballs by you? here is liz macdonald in emac's bottom line. what is going on? >> what is going on there was an internal plan at the "new york post" at jcpenney according to the "new york post", have the retailers show the suggested retail price but the price tag be lower. suggested retail price for a pair of pants could be 50 bucks on the sign in the store but the price tag could say, you know what? 30 bucks you pay. jcpenney we have been pressing them to come back to a statement about the report. seems to me they have said we will get back to you. we want to respond to this

news report. there is an internal debate how to respond to it. this is company year ago to the day had the reinvention of its retail strategy. we're not going to have coupons. we're not going to have discount. we'll have everyday pricing. tj maxx is undercutting them. they're there with sears in retail purgatory, guys. the we have the, the stock is under pressure. it is the forth worst performing in the s&p 500, down nearly 60% off its 52-week high. and we're expecting earnings coming out of next month of a loss of a nickel a share versus 74% eps profit last year. they're still in a recalled would of pain at jcpenney. the revenues are expected to drop about 23% quarter to quarter when they report next month. so you know the thing is, did the strategy work? did ron johnson, former executive at apple, is the strategy working? seems like it is not. three straight quarters of plummeting same-store sales, down 30%. the thing is, americans love sales, period. they love to see sales,

right, guys? lori: you mentioned tj maxx, sorry they already do the pricing thing or they did for a long period of time. you see the discounted prices on higher end fashion luxury items that might come into the tj maxx inventory. >> exactly, know what you mean. lori: for jcpenney they're way too late on the strategy. >> they may be behind the eight ball, guys. jcpenney may have to reinvent itself once again to get its sales up. melissa: liz macdonald, thanks so much. lori: the fight for gender equality hit hair salons. denmark mandated that men and women with short hair must pay the same price for a haircut. danish women with short hair complained to denmark's board of equal treatment. of course she did. melissa: a lot of time on her hands. lori: she was charged 94 american dollars at a haircut at a salon while men were only charged 428 croner, the equivalent of $76. melissa: that is a lot. lori: they claim cutting the

hair is requires more time and materials. the listed price made only. the woman claimed that she was being discriminated based on her sex and ruled in her favor. melissa: more layers to it. women, kind of cut it. one thing. maybe a few layers. i don't know. i think it is more complicated. lori: my hairdresser deserves every last dime she gets. i have the toughest hair with my frizzy curls. you know. melissa: that is the other thing. get haircut once a month. grows a like a weed. we let it grow for months. i don't know. i think they. i can hardly contain my excitement. my favorite harvard professor, marti feldstein. he will join me. we'll talk about balancing the budget. hope i can't wait. join me at -- macro econ,

the foundation for everything. ec 10. lori: do you think he remembers you? melissa: he will pretend like he does. that's for sure. lori: with apple plunging how can you invest in its smartphone rival samsung? tracy byrnes and ashley webster have the answers next on fox business. don't miss it.

♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. tracy: good afternoon, i'm tracy byrnes. ashley: i'm ashley webster. apple falling hard. the stock dropping nearly 12% on fears the company, well, is losing out to smartphone rival samsung. that raises the question how can you invest in samsung? we're looking for options in moments. it is not that easy. tracy: it is not. there is no adr. the odd man out months after nasdaq and i.c.e. teamed up

in a failed bid to take over the new york stock exchange, nyse and i.c.e. are going it alone. bob fwri felled shares his reaction with liz claman from davos. that is ahead. ashley: a dire warning from the economy from a top advisor to president bush. ed lazear is here. he says we need to take dressic action right away. nothing happens in washington right away. tracy: unless its hundred of orders, or vacations. tracy: as we do every 15 minutes we talk to nicole petallides down on the floor of the new york stock exchange. >> we're up the 13,877 at our highest point today, tracy and ashley. we pulled back some. s&p 500 moved into the red. the nasdaq has been in the red weighed down by apple in just a moment. as far as dow market breath has weakened some. we saw plenty of winners,

retail jobs. those have been winners. bank stocks are to the upside. names like netflix are jumping. that helps things along. the other side of the coin a name like apple is under pressure. traded as low as $450 today. numbers despite iphone sales. they did not meet analyst expectation the that brought all the downgrades after that. heavily weighted in the nasdaq, 10%, versus 2.6% for the s&p 500, that is why you're seeing nasdaq down right away. dow stock would be so heavily weighted, the dow would be down over 450 points. good thing it is not in the dow jones industrials anymore. we've seen some drug stocks, hitting 52-week highs, names like pfizer doing well here today. we continue to watch some of the other movers. 3m, home depot, valero hitting 52-week highs. a lot of names are on the move. as far as oil and gold real

divergence. gold pulling back 20 bucks while oil is gaining. back to you. tracy: nicole, see you in 15 minutes. amazing what it would have been done to the dow. ashley: a real drag in other words. apple not only earnings mover. as nicole said. 3m shares off all-time high after it posts fourth quarter results. sandra smith with what happens after the bell. >> microsoft falls into one of the gainers in the dow 30 at this moment but a big story we're watching as far as earnings out of already come out is 3m. of course the, a lot of the companies, consumer products division, the graphics division, there were some strong performances here. you notice the stock obviously is in the red. here is a look at a 3-month chart. this stock has gone up, up and away. it is just shy of $100 a share. most analysts are optimistic on 3m. they have a overweight rating on it. it met expectation. with that buildup in the stock you just can't meet

expectations. you get a selloff usually when that happens. the poetist note company doing all right. we're waiting on microsoft out after the bell. you see a three-month chart here. looks mighty different for microsoft. everybody will watch with such a weak pc market this company obviously revamping their operating system. putting out a tablet, branching in into the hardware market. microsoft has been making some big bets, guys. here's what to watch. earnings per share of 75 cents expected on revenues of 21.53 billion. that is after the bell. i will be there. it will be a big one to watch. ashley: certainly is. sandra, thank you very much. by the way, keep it here for full coverage for after the bell results as sandra said, microsoft, starbucks and many more. 4:00 p.m. eastern time here on fox business. tracy: sandra said earlier, starbucks could be a nice little surprise. we have to talk more about apple. we have concerns over its growth, totally hitting the

stock, especially since apple has been losing market share to samsung. that very fact has people wondering how the heck i get my money in samsung instead. there is no listing here in the u.s. believe it or not. no adr, nothing like toyota and sony. even though there are shares in london, samsung's own website it is against the law for u.s. residents it buy them. i swear. i thought we were with south korea. ashley: you think. tracy: what alternatives are there? let's bring in a senior analyst at susquehanna. i want to own the shares outright. is there any way for me to do this? >> i think there are some online brokerage firms that may offer you the opportunity to be able to buy stocks in the local korean market. other than that there is no other way. unless you consider buying etfs. there is one etf in particular, ewy, with 25%

exposure to samsung. and that's one of the few etfs that are out there for people in the u.s. that could benefit, have some exposure to samsung's success story. ashley: want to talk about the success of samsung. i know it operates in a lot more markets than apple does, but you could argue that is good news for apple because it gives a lot of room for growth for apple products. so which way do you look at that? i mean apple certainly has high-end market. does it need to reduce the cost of products in order to get into these often developing markets? >> sure. there are two fundamental difference between apple and samsung. samsung, when it comes to manufacturing, is vertically integrated. they manufacture most of the components that bo go into samsung's smartphones. number two, samsung has a portfolio approach. they go to different countries, different regions and have a different type of

a smartphone for those regions. this is where apple is catching up. i expect apple to follow the same strategy having different kind of products for different regions. but when it comes to manufacturing, which does impact time to market, samsung has an inherent advantage that apple can not copy. tracy: right. supply chain, right? so let's go with that. to ashley's point, let's say samsung continues to take over the world. everybody's buying galaxy phones. do you think samsung might come to the u.s. and list here or the regulations and fees too much for them to deal with? >> i'm not sure if samsung has any incentive to come to the u.s. they're already winning in the marketplace and sometimes countries come to the u.s. and list to gain more mindshare and doing it with their products. so i don't see any benefit to samsung to come and list and having to do with all

the regulatory requirements. ashley: but the u.s. is such a big market. and you know apple certainly has done very well here and in europe. this is a huge, very well-heeled, if you like, market for samsung but you don't think that's a share of the mind? you could argue that apple has a share of people's mind the way they think about products. apple is very powerful brand in the united states. can samsung eat into that as well? >> i think they are eating through the mind share by having innovative uct pros products and their ability to come to the market before apple to do so with a product cycle is what is giving samsung an advantage. so, no, i'm not sure if listing in the u.s. market is going to really make a difference, and again, the time to market, which they benefit from vertically integrated and innovating is

what is enabling them to do that. to that extent, watch out for galaxy s-4 coming out in sometime early april. that will be another key catalyst on the horizon that could further pressure apple. tracy: that is really interesting stuff. thank you, sir. ashley: yeah. very, very good. >> thank you. tracy: because they have it all in house. they control the supply chain. they can bang phones out. i hope regulators are listening. a lot of investors are missing out. ashley: they are. 30% share of smartphone market, samsung. they think apple may peek at 22%. tracy: if you want to do what he said to buy the little pink sheets, there is only 195 according to thomson reuters that are trading. talk about illiquid? ashley: that's it? tracy: yeah. ashley: you have to work it. tracy: meeting like next thursday get a price. ashley: that is the old school. the debt ceiling is going up, we know that. the fiscal cliff was afraided. -- avoided. one presidential advisor says it is time for

washington to do the real work to boost the economy. ed lazear is here next. tracy: nasdaq ceo bob greifeld weighs in on the new york stock exchange plans to tie up with nasdaq's former partner ice. liz claman talks with him in davos. that is coming up. first as we do every day at this time of day, let's look how oil is trading, up, just under 1%. $96 a barrel even. we'll be right back what's next?

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or help doctors turn billions of bytes of shared information... ♪ into a fifth anniversary of remission? ♪ whatever your business challenge, dell has the technology and services to help you solve it. ashley: fiscal cliff avoided. debt ceiling deadline extended. now the question remains can congress get a balanced budget passed? ed lazear, hoover institute fellow and former chief economic advisor to president george w. bush has some ideas on what washington needs to do before the new debt deadline is upon us.

ed, thank you for joining us. so what -- >> pleasure, thank you. ashley: what should congress do before that debt ceiling again comes upon us and what's the likelihood they will do it? >> well i'm not so sure they should be focusing on the short run at all. they should think in terms of what are things they need to do to grow the economy. if you look at the history of economic growth since the economy got out of the recession, formally got out of the recession back in june of 2009, we've had growth of about 2%. the long-term growth rate in this country is about 3%. so, a recovery usually means that you're growing at rates that are better than the average, in order to catch up. we're not even growing at rates near the average. ashley: right. >> what congress and the president need to do is focus primarily on things that would get the growth rates up. i would putnam per one on the list, focusing on the tax code and trying to

create a tax structure that is pro-investment, rather than anti-investment. ashley: what we're hearing from the administration is higher taxes, more regulations, bigger government spending. >> right. ashley: the republicans on the other hand say, look we need big spending cuts. we can not continue to spend money we don't have but then that doesn't lead us to the dilemma europe is facing where you need austerity but how do you get economic growth at the same time? >> well, again, you know that is why i say, if you look at numbers, not to be too technical about this, but if you use the president's numbers, use president obama's predictions where we're going to be, the long-term average size of government, well hive to the economy is about 20, 21%. the president is saying that within a couple decades if things go along as they currently are, we will have an economy where we're having about 28% going through government. so what that means, give the tax revenues that we have, is that we will have to

raise taxes on the average american, i'm not talking about the rich, i'm talking about on the average american, by about 50% in order to cover that. a 50% tax increase on the average american is enormous and what it probably implies is putting in a very significant vat at the federal level. that is probably the only way to get there. so either we're going to completely european structure, have very large vat tax, very large taxes in general? or, we're going to have to get those, the growth in entitlements, not cuts, the growth in entitlements under control. and so i think even if you use the president's structure, looks to me like, almost all of the action has to be on the spending side. ashley: well, ed, quickly, look, the republicans are giving in essentially on the tax hikes initially. they were treated on the debt ceiling issue trying to tie that to spending cuts. >> right. ashley: where does the gop draw the line in the sand do you think? >> well i'm not sure they're in a position to draw the

line right now unfortunately. you know, they control the house and the senate is controlled by the democrats. the white house is controlled by the democrats. so i don't know that they have a lot of power at this point to do very much. i think what the gop should be doing again is continuing the message that actually the challenger, romney had in the campaign, which is what we should be doing is focusing on long-term growth. long-term growth is the cure to most of our ills and if we continue to grow at 2%, we are going to have problems that persist for the next, many, many decades. so we've got to get back to an environment where we have positive business investment. the easiest way to do it by the way is look at the tax side. ashley: yeah. >> we can still have a tax structure that is completely progressive but we have to continue to focus on structures that will enhance the ability for, for businesses to invest. ashley: that's right. >> moving tax rates, capital gains and dividend taxes

from 15 to 24%, and taxing the rich is not a pro-growth policy. ashley: have to leave it right there. ed lazear, thanks so much for joining us. really appreciate it. >> thank you. tracy: especially when the rich keep moving. ashley: that's right. good point. tracy: follow the golfers. as we do every 15 minutes we check the markets now. nicole petallides on the floor of the stock exchange. good day for the drugmakers, huh, nicole? >> it is. look at some names on the move after earnings, latest drugs, clinical trials and mostly good news here, look at bristol-myers up 2 1/2% for bmy. they did beat street expectations. they're posting gains doing very well with that. they settled claims with a interdrug trial subject. they moved along from that. pfizer here at a 52-week high. pfizer shares hitting this multiyear high on the results of several studies. they have done well with treatments for depression, overactive bladder, quitting

smoking. biogen i can't leave out doing well. up 1.3% right now. back to you. tracy: thanks, nicole. see you in 15 minutes. can staying single save thousands of dollars on your tax bill? everybody will think i'm a bah humbug on love but we'll crunch the numbers and rethink your wedded bliss. ashley: that is right up your alley. nasdaq ceo bob greifeld is fired up about the fiscal mess. he talks with liz claman in davos what washington needs to do next. but first, take a look how the good ol' u.s. dollar is moving against the world's currencies. we'll be right back. officemax can help you drive supply costs down...

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>> at 22 minutes past the hour i'm arthel neville with your fox news minute. north korea is warning prance -- plans to conduct a nuclear test and will launch long range rockets in response to u.n. sanctions. the body says that is a peaceful bid to send a satellite into space and military purpose to attack its quote, sworn enemy, the united states. in utah the salt lake city airport is closed due to icy conditions. a frontier airplane slid on a runway but landed safely this morning. the airport spokesperson

says there were no injuries but several flights have been canceled. the abandoned chicago warehouse covered in ice from two days of firefighters efforts in subzero temperatures, it is on fire again. one-third of the windy city's fire department fought the flames since tuesday night. the fire rekin i would in the center of the building early this morning. those are the headlines. get you now back to tracy and ashley. ashley: fire and ice. arthel neville, thank you very much. appreciate it. >> that was a pat benatar song, wasn't it? ashley: should be if it isn't. that is going back. during the fiscal cliff debate more than 60 ceos signed the fix the debt campaign and some didn't say much after but some were vocal afterwards. liz claman is at the world economic forum with one of the most passionate ceos. liz: very passionate. he wrote op-eds. he gave us a live interview on election night in fox business. you know what?

it is about all crucial it is to fix the debt. he is ceo of nasdaq omx, bob greifeld. good to see you, bob. >> good to be here liz where do we stand with fix the debt? any closer? >> i think we're disappointed how the fiscal cliff negotiations played out and we as ceos in ticks the debt said we were fine with tax rates going up on the wealthy, and we said that in the context of in addition, we should have spending cuts. we got one half of the deal. we're certainly hopeful congress and the president will go forward with spending cuts as they address the sequester and other continuing budget resolution issues that they have. liz: except of course we have this debt ceiling once again. are you optimistic about things? >> i certainly do not believe the debt ceiling is where these negotiations should take place. we have incurred these debts. we have the full faith and credit of the u.s. government should not be put at rest. we think the debt ceiling, better or worse we already made that decision. can't go back. you have to extend the

ceiling and use other places such as the sequester or continuing budget resolutions in order to basically negotiate the next part of the agreement. liz: if we see another downgrade of the u.s. credit there is noise about fitch possibly joining s&p in cutting the u.s. rate. it wasn't the worst thing in the world the first time it happened year ago august but that affects some of your listed companies, doesn't it? >> it does and my feeling the credit rating we have today, as a u.s. government, we really don't deserve. if this had been a commercial enterprise, companies such as nasdaq or general motors and acted the way the u.s. government did with respect to the last debt ceiling debate we would be downgraded to junk. i think it is important for the u.s. government to act responsibly to earn a ratio, a rating that is proper. i would be concerned about downgrades. liz: what a difference a year makes. the last time you and i were sitting here in davos, switzerland, you were teaming up with the intercontinental exchange to

make a $11 billion bid for nasdaq, for nyse of course. >> right. liz: here we are a year later and that partner, ice, partnered with the nyse to merge. >> yes. liz: when you heard about that, did that give you a pit in your stomach? what did you think about that? >> no. i certainly wasn't surprised. in the year value of nyse ice declined and when they bid was not much more than they could bid for the whole asset. it was clear the acquisition is good for the nyse shareholders. i also think that it probably gets them out of a jam with respect to the london clearinghouse. i think ice demonstrated capabilities to execute a clearinghouse strategy and that wasn't so clear if they're a stand-alone entity. liz: they have been pretty obvious about the fact they may spin off the euronext part of it. would you then scoop that up? >> no. what we said to the extent that asset becomes available we would have to consider it, right? i'm not sure if we would be

interested in bidding or not. liz: do you have the money for it? >> what's that? liz: would you have the money for it? >> it depends what the price is. it is about the value for the dollars. it is nothing we think about today. we're certainly focused on our business plans and we're very happy with the success we've had and it allowed us to thrive in very difficult times and we had a very strong 2012 and we expect very good things in 2013 liz i was at the nasdaq for an ipo that got a lot of attention and that was solar city. >> yes. liz: elon musk who listed on nasdaq from tesla is chairman. what is it, that make your pitch. why nasdaq versus nyse? >> i should mention news corporation, the parent of our company is nasdaq listed so. >> the first thing i have to say is elon is certainly a fantastic entrepreneur. it is really remarkable what he accomplished with spacex, tesla and now solar city. when you look at the nasdaq

value proposition it centers around the fact we have a very deep relationship with our listed companies. we just don't have the listing as a touch point. it is interesting that the services that we provide will actually be twice as large as actually the listing revenue itself once we complete the acquisition of thomson reuters assets in this space. we try to maintain a very deep and really comprehensive relationship with our listed companies over time. that is really unique. tracy: he was pretty vocal about it. that was nasdaq ceo bob greifeld speaking with liz claman. you don't want to miss liz claman's interviews next hour. mukhtar kent, chairman and ceo of coca-cola and kent "frasier", ceo of merck. ashley: will mukhtar give away the secret recipe? tracy: i hope so. ashley: never. president obama picking a former federal prosecutor to run the sec. is mary jo white the right woman for the job? tracy: federal officials briefing reporters on the investigation into boeing's

dream liner. we'll have the latest on that ahead. as we head out to break let's look at some winners and losers on the s&p 500. we'll be right back

tracy: president obama is moments away from announcing his latest nominations. peter barnes will join us with the details. first let's take a look at the dow quickly. it is almost near its all-time high. 14,164.53 was the high on october 9th, 2007. we are very, very close now. the dow is at 13,820. ashley: we're getting there. >> sure are. we'll go tore nicole first. nicole is standing by with keith bliss.

>> no one loves the graphic more than i do. it is exciting to watch how close we are to all-time highs, keith. some of the traders i have spoken with, the high we saw today, 1,877 was a peak at least for now. do you think that is the case? >> for me it is too early to call that. a couple weeks ago i thought we would be overbought at s&p 1490. this coincide with that. >> which way are we going? >> we have a lot of momentum inside the marketplace. the thing everybody needs to pay attention to the divergence we've seen between the s&p and the vix. the vix is rallying pretty hard today. when the s&p 500 hit 1500 there were some 37 news agencies september something out saying the s&p 500 hit 1500. you saw it start to pull back almost immediately and vix start to rally. the pros read that means everybody will jump into the market and contraindicator where the market will two. exactly. we'll pull back.

the vix will stablize. we may have one more run to 1500. if the transports don't hold up here and if the dow doesn't move any higher i think that's what we reevaluate and we'll pull back a little bit in february. >> playing it careful around this level. all right. there you have it. ashley: too close to the vest says charles payne. we'll get to that in a minute. nicole, we'll be back with you in 15 minutes. breaking news. oil closing up 72 cents today after losing ground coming back to almost $96 a barrel. tracy: i will people feel that soon of the as we mentioned president obama moments away from announcing his picks to lead the sec and the cfpb. peter barnes will join us now with the details. hey, peter. >> hey, tracy. that's right. the president set to announce he will appoint mary jo white, a former federal prosecutor to be the chairman. sec the first time we ever had a federal prosecutor to

head the sec she has a reptation for being a very tough prosecutor. she worked in the clinton administration. ran the southern district of new york. was the assistant u.s. attorney for that area. obviously that includes wall street. that is part of its jurisdiction. she was not known for being a big prosecutor of financial crimes. she really made her mark prosecuting mobsters and terrorists. for example her team put john gotti, mobster, john gotti behind bars. took the teflon off the teflon don. she prosecuted the 193 world trade center bombers. including the group's leader, ramzi yousef. she is now a white-collar criminal defense attorney. her notable clients have been ken lewis, former ceo of bank of america. she is expected, just, a few analysts i got notes from, she is expected to get senate confirmation from this job because she has a reputation for being very

tough. the president as you said, renominate richard cordray to run the consumer financial protection bureau which was created under the dodd-frank legislation. he was, the president nominated him back in 2011 but republicans blocked that nomination. and so the president went on to recess appoint him a year ago. they want some restructuring in the cfpb we'll see if they have that fight again here. richard cordray up to bat again at the cfpb. tracy and ashley. ashley: second time around. tracy: good luck with that. peter barnes, thank you very much. >> okay. ashley: guess what? it is time to make money with charles payne. this hour he has got a stock pick that will help you cash in while you catch a few zs. perfect combo. talking about sleep, charles, you could use some of that. >> i could use some of it. tempur-pedic, right off the bat they report after the bell. this will be up or down minimum of double-digit move.

i will let you know right now. ashley: all right. >> i will tell will tell you why it is up right now. the stock is breaking out. they won a decision against certificateta. this is interesting. they didn't go to court. they went to the better business bureau. the claim serta was making their i-cloud was superior. knock it off. you can't claim it is cooling or superior. the claims were problem matic. serta agreed. a lot of people pro-government spending using along with it. ang in a mike cowave. if it wasn't for nasa we wouldn't have tempur-pedic. tracy: we know a lot of people who are huge temperpedic fans around here. >> earnings are out after the bell. they will finally beat. if they give good guidance this stock will be a grand slam. this is not for those faint of heart. you will need a bed to fall on if they miss.

the stock is i braing out right now. it has a long way to the upside. it in the last year was $87 a share. ashley: there are a lot of knockoffs. >> a lot of knockoffs. takeover of seeley give them entry level. someone may start with a sealy mattress and up sell them to the --. tracy: not cheap to sleep on the block of concrete. >> is that what it is? ashley: it is not concrete. >> you see the mattress and box springs cost $85,000? ashley: no. >> it was a european country. we'll talk about it. tempur-pedic after the close along with microsoft earnings. tracy: you crack me up. it will be up really big or down really big. ashley: exciting, isn't it. could rain. it might not. >> i'm always definitive. tracy: all right. so, tell us, please, somebody, what sparked the fire aboard the boeing 787 dreamliner in boston earlier this month? federal safety officials are

holing a briefing this hour. god willing we'll we'll get details. ashley: as we do every day at this time let's look at those 10 and 30-year treasurys. we'll be right back. [ male announcer ] this is joe woods' first day of work. and his new boss told him twongs -- cook what you love, and save your money. joe doesn't know it yet, but he'll wk his way up from busser to waiter to chef before opening a restaurant specializing in fish and me from the great northwest. he'll start investing early, he'll find some good people to help guide him, nd he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade.

>> i'm lori rothman with your fox business brief. officials at sac capital are giving investor an update on an investigation by the sec.

that is what sources are telling us according to senior correspondent charlie gasparino. the sac says it answered the wells notice about possible charges of insider trading and the hedge fund will cover any and all legal costs an fines. investors say sac officials say founder steve cohen would not be charged. mortgage rates hitting a four-month high. according to freddie mac the average rate of 30-year mortgage is 3.42%. a san francisco appellate court vacate ad jury verdict against mattel after mga entertainment was awarded $80 million in claims relating to those brats dolls. that's the latest from fox business, giving you the power to prosper

tracy: please somebody tell us what parked the fire

aboard a dreamliner in boston two weeks ago. federal investigators are holding a briefing right now and rich edson has the details. hey rich. >> don't know the reason and don't know when the planes will go back in the air. that is the bottom line from the briefing from the ntsb, the expectation is never to see a fire aboard a airplane and keg sans of these events can't be understated -- significance. the lithium eye on battery experienced a thermal runaway and a fire and they're trying to figure out exactly why. the federal aviation administration grounded all the 787 dreamliner after the battery caught fire. another failure forced an emergency landing of a tokyo bound flight. transportation secretary ray lahood said government regulators are working with boeing to identify the battery problems. the problems with the 787 goes back to issues with suppliers and delays that pushed deliveries back years. we're still watching this briefing, trying to figure

out if the ntsb can tell us anything more. as it stands now nothing on a timeline when the planes can start flying again or the precise reason why these batteries were catching on fire. back to you. ashley: rich, is there a separate investigation for each incident? we're just hearing about the one involving i guess this is the boston one, is that right? >> right, this is specifically the boston one. they said this particular incident the battery was so destroyed they're having a real tough time figuring out some of the precise tests. they're bringing it in work ing with their partners in japan. it is work taking time. tracy: jop january was getting different results. we still have difficult investigations going on. we're not getting closer. >> exactly. different countries working together. the company trying to coordinate with different countries. remember some of the issues boeing has is with supplier with the parts. not boeing manufacturing the entire plane. it is asassembling a large part of it. tracy: crazy stuff. rich edson, thank you so much, sir. >> thanks.

ashley: rich, thanks again. boeing meantime, got to get these planes back in the air. got to figure it out first. it is a quarter till. time for --. tracy: maery. joe: white speaking right now. we'll take a piece of that. ashley: all right. mary jo white. >> we have a lot of important hard work ahead of it. i welcome the opportunity to lead those efforts and to build on the work of chairman mary shapiro and chairman elisse walter who i am very honored is present today. finally and most importantly i want to thank my husband, joan white, who is here today, on what is our 43rd wedding anniversary. >> today. >> today. for his strong support of me in seeking to enbeige engage in this significant and challenging public service. thank you very much. >> thank you. ashley: saying she welcomes the opportunity as the next head of the securities & exchange commission, as the next chairwoman. she doesn't have the

technical expertise in the financial arena. that may be an issue that comes up in the confirmation process. tracy: right. ashley: but peter barnes saying from the white house it is believed she will get through that process. yeah. tracy: now we'll head back to nicole petallides on the floor of the stock exchange. i know you have a lot stocks hitting new highs, nicole. >> we go sector by sector. follow 10 sectors in particular. large ones. we see consumer discretionary doing well. banks, drugs, doing well. tech has pulled back obviously because of apple. some names hitting new 52-week highs. multiyear highs. we heard netflix come out with their quarterly numbers after the bell yesterday. shareholders want to celebrate with happiness and glee. 40% to the upside as they added more subscribers. given a good outlook. amazon making an acquisition, text to speech software company. that is big news to them. gold hand on there as well. back to you. ashley: nicole, thank you very much.

tracy: well the fiscal cliff tax code changes are causing some couples to ask, why get married? we are breaking down numbers with an ernst & young partner next. ashley: tracy says, don't do it. tracy: you work very hard for your money. ashley: take a look at some of today's winners and losers. the dow up 50 points. we'll be right back this is $100,000. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally.

ally bank. your money needs an ally.

>>. ashley: we have breaking news for you. "the wall street journal" reporting that morgan stanley ceo james gorman will be taking a pay cut for 2012.

the report says the pay cut will be modest and gorman is expected to get a defered bonus. morgan stanley financial performance playing a part in the pay decision, according to sources at "the wall street journal.". tracy: all right. so could higher taxes discourage couples from getting married? i got to clarify. i'm all about love. i love, love. want to be in love for the rest of my life but i work very hard for my money which is why a tax expert is here. she crunched numbers for us, says a couple doing really well, decide to get married they could pay uncle sam, wait for it, $17,000 more than had they stayed single. she is here with us. that is year of college, a college tuition in the state school. >> every year. tracy: every year. that's crazy. there was always, you always paid more when you got married prior to the increase in rates. but now, it is, that much more amped up, isn't it? >> in fact the new higher limits for the various new tax law we got at year-end

openly has a gap between single and married of $50,000. so the top rate comes into play at 400,000 of taxable income for sing fell people but only 450 for a married couple. so it's a gap that they made between single and married is very narrow. >> always wonder the lonic where this comes from. you crunch these numbers. i want to show everyone. did adjusted gross income of single people. we have full screens we can put up right now. so you chose, the two people, one is 200. one is 250. together they're at 450. >> right. tracy: you picked some obvious itemized deductions. tell us about them. >> we picked charitable, mortgage interest and property taxes and to keep it simple state rates are different state to state we left that out. so assume no state itemized deductions. we have deductions of 35,000 and a half for peach person and combined was 71,000.

what is interesting if they stayed single under the new tax regime they would not lose any itemized deductions in the rules. but being married under the new rules they lose under what we call the p's deduction, lose 4500 of deductions under the rules. tracy: just because they're married. >> just because they're married. tracy: move on to personal exemptions as married people you lose them all together. >> you had a personal exemption $3900 had you stayed single. 7800 if you both stayed single is completely gone. tracy: the worst part, god forbid you're working on wall street or investing. you have medicare taxes on investment income and of course the haier one on earned income as well. >> that applies to lower income or other adjustments. if you have more than $200,000 of income, if you are single or 250, again, notice that small gap again. tracy: right. >> as married, you pay the increased medicare tax and on the investment income it is now called the net

investment income tax. so the, higher earning single person, in my example, single 2, would have small amount of tax under the new law had they stayed single. if he is married, if they are married, then they pay much more as a couple on that. so on the investment income they pay $1520 as married couple, instead of 760 on single taxpayer. and $1440 as the incremental amount of medicare tax on wage. >> just it say you're married? total here is, about over $17,000. >> 17,000. think about it. doesn't matter when you get married during the year, you are considered married the entire year for tax purposes. you have your wedding. you pay for the wedding. go to file the joint tax return in april. big surprise. tracy: anybody who thinks they're having new year's eve wedding and it won't caught, you're wrong. don't do it. you have to come back, you said interestingly enough there are perk ps to being

made for estate planning purposes. >> that is where the perks are. why is it your penalized for being married from income tax standpoint but there are great perks for leaving property to each other in an estate tax setting? tracy: why everyone should get married at 60. i'm all about that. >> you're welcome. tracy: there is the tax plan. ashley: 17,000. tracy: that is a year of state college tuition. ashley: the super bowl, let's change topics. that is coming up a week from sunday, you know what that means, right? chicken wings. tracy: really? ashley: american chicken council is warning it may be tougher to find chicken wings this year because of record high prices for corn which makes up two third of a chicken's diet if you didn't know that. the council expects 12 million fewer wings will be eaten this super bowl weekend that is 1% of the 1.2 billion wings americans are expected to eat that weekend. wow! of course the super bowl without chicken wings would be like thanksgiving

without turkey. i would live without them. if you say no beer that's a different story. tracy: i will be the only chick drinking wine and eating cheese at super bowl. i know i am, right. ashley: you're not typical. tracy: take your wings. cheryl casone will take us through the last hour of trading. she is talking with southwest airlines chief gary kelly whether the business traveler is back. stay tuned the world economic forum in davos. liz claman goes on one on with the ceo of coca-cola mukhtar kent and. and merck chairman, ken frazier with scottrade's smart i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade.

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